As parents, we’re all just trying to give our kids the best shot at life, right? Whether it’s showering them with love, encouraging their wildest dreams, or tackling the whole “financial planning” thing (which sounds way more complicated than it really is, I promise), we’re always looking for ways to set them up for success. And let’s be real—figuring out financial planning for kids can feel like juggling a thousand things at once, but it doesn’t have to be that way!
Take a deep breath. The truth is, a few small steps now can make a big impact later. Even when you’re just teaching your kids how to save money or even setting aside a bit of money for the future, you’re already doing something amazing. It doesn’t have to be a huge overhaul! And hey, when it comes to their education, those costs can be scary. Canada’s student loan debt is about 28,000 and in the United States, student loan debt averages around $38,000—yikes! No wonder so many young people regret their loans. But that’s why we plan ahead, right? Little by little, we can take some of the stress off their future selves (and let’s be honest, ours too).
So, grab a cup of coffee (or tea…or a taco), and let’s walk through a few fun, practical ways to help set our kids up for success—not just financially, but in life. Because guess what? You’ve totally got this!
1. Open a Registered Education Savings Plan (RESP)
One way to invest in your child’s future is through a Registered Education Savings Plan (RESP). An RESP is a great financial planning tool for kids, allowing you to start saving for your child’s education with the added bonus of government contributions. But how does RESP work?
Getting started with an RESP is pretty straightforward, and most financial institutions offer them. What makes this option so helpful is the power of compound interest—the earlier you start, the more time those savings have to grow. Plus, it’s flexible! You can adjust your contributions based on your financial situation, and if your child decides not to pursue higher education, you still have options for using the funds.
While financial planning for kids helps us be good stewards of our money, we can also trust God to guide our planning, knowing that He is ultimately in control of our children’s future paths.
2. Make Long-Term Investments for Growth
Beyond education, building long-term financial security through investments can also benefit your children later on. It’s like planting seeds that will grow over time, giving them a firm financial foundation when they need it most.
If you’re new to investing, don’t worry—you don’t have to be an expert! Consider options like index funds, which allow for gradual growth without needing constant attention. These funds are a great way to diversify, meaning your savings will grow steadily while protecting you from market ups and downs. Long-term investments are a key part of financial planning for kids, ensuring that their future is as secure as possible.
To make it easier to track your investments, you can use a wealth tracking app. These apps help you monitor your investment performance, keep an eye on multiple accounts, and even track your savings over time. They’re simple to use and give you a clear view of how your investments are growing.
The key is consistency. Over time, your investments, along with the help of a wealth tracking app, can provide your children with financial security that will support them throughout life. It’s also a wonderful way to model financial responsibility to your kids, showing them how making small, thoughtful decisions today can have a big impact tomorrow.
3. Teach Healthy Financial Habits
While saving money for our children’s future is important, teaching them to manage money wisely is equally vital. Instilling good financial habits early on will help your kids avoid common financial pitfalls like debt and impulsive spending. Financial planning for kids goes hand in hand with teaching them these essential life skills.
Start small and make it fun! Encourage your children to set aside a portion of their allowance or birthday money for savings, but turn it into a game. Try introducing a money-saving challenge—there are tons out there! For example, you can do a 30-day challenge where they save a little more each day or a “no-spend” weekend. These activities turn saving into a fun competition, and who doesn’t love a good challenge?
Make budgeting a family affair. Involve your kids in real-world money decisions. Whether it’s budgeting for grocery shopping or planning your next family trip, let them have a voice. Ask them to help choose what you splurge on and where you save. Maybe they’ll decide to skip ice cream out and opt for a homemade sundae night instead! These little moments teach them how to prioritize spending.
Let them be the “banker.” When they’re a bit older, open up a simple bank account where they can practice managing their own money. Take it a step further by pretending you’re the customer, and they’re the banker. This role-playing can be a fun way for them to feel responsible and understand how banks work.
As they grow, you can introduce more advanced topics like credit, loans, and the importance of living within their means. The goal is to help your children develop a healthy relationship with money, viewing it as a tool for stewardship rather than something to stress about. Proverbs 22:6 reminds us to “Train up a child in the way he should go, and when he is old, he will not depart from it.”
4. Encourage a Lifelong Love of Learning
Success is not just about money. Equipping our children with a love for learning opens doors to countless opportunities, regardless of what career path they choose. Cultivating curiosity, creativity, and problem-solving skills will serve them well in every area of life.
Encourage your kids to explore their interests, ask questions, and dive into learning opportunities—whether that’s through reading, hands-on experiences, or extracurricular activities like coding classes, music lessons, or science experiments. These activities build confidence and broaden their skills.
We can also lead by example. When our children see us learning new things—whether it’s a new hobby, a Bible study, or even a home improvement project—they’re more likely to value education and personal growth in their own lives.
Final Thoughts
At the end of the day, we all want to see our children thrive, and part of that is helping them build a solid financial foundation while encouraging a love for learning. It’s not just about the money—it’s about equipping them with the skills and habits they’ll carry throughout life. Whether you’re starting an RESP, teaching them to manage their allowance, or simply leading by example, every little step counts. And remember, we don’t have to have it all figured out. With God’s guidance and some thoughtful planning, we can trust that we’re setting our kids up for the bright future they deserve.
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Forest Rose is a God Loving, Blessed Wife, & Mama to 3 girls. She’s passionate about lifting moms out of the trenches that are discouraged, overwhelmed, or feeling alone or isolated. Her hope is to point them to Christ and equip them to rise up with a newfound hope and joy within, that He alone can provide. Besides blogging, she also loves to create printables!
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